Slide 1: Third Quarter Fiscal 2019 Earnings
July 31, 2019 Third Quarter Fiscal 2019 Earnings
Slide 2: Safe harbor
Safe harbor In addition to the historical information contained herein, this presentation and the conference call that accompanies it contain forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding: our being well positione
Slide 3: Qualcomm reports third quarter fiscal 2019 earnings
Qualcomm reports third quarter fiscal 2019 earnings Quarter ended June 30, 2019 • We delivered another solid quarter operationally in the midst of slower demand for 4G devices as the market prepares for the global transition to 5G. • Our 5G design wins have doubled over the last three months, leavin
Slide 4: Quarterly results and guidance
Quarterly results and guidance As of July 31, 2019 Q3 ‘19 Guidance* Q3 ‘19 Results (3) Q4 ‘19 Guidance^ GAAP Revenues $9.2B - $10.2B $9.6B $4.3B - $5.1B Non-GAAP(1) Revenues $4.7B - $5.5B $4.9B Non-GAAP(1) combined R&D and SG&A Increase 6% - 8% Increase 1% Decrease 1% - 3% expenses, sequential chang
Slide 5: Additional results and guidance
Additional results and guidance As of July 31, 2019 Segment Results and Guidance Q3 ‘19 Guidance* Q3 ‘19 Results (3) Q4 ‘19 Guidance^ MSM chip shipment 150M – 170M 156M 140M – 160M QCT EBT margin % 13% - 15% 14% 13% - 15% QTL revenues $1.225B - $1.325B $1.29B $1.0B - $1.2B QTL EBT margin % 65% - 69%
Slide 6: MSM chip shipments
MSMTM chip shipments Calendar year, millions 903 818 823 804 242 217 237 186 Quarter December 203 211 232 September 220 140 - 160e* June 225 201 187 199 156 March 233 189 187 179 155 2015 2016 2017 2018 2019 MSMs are products of Qualcomm Technologies, Inc. and/or its subsidiaries. * Guidance as of J
Slide 7: Global 3G/4G/5G device shipment estimates
Global 3G/4G/5G device shipment* estimates Calendar year, as of July 31, 2019 ~1.80B 1.755B ~1.70B – 1.80Be Down ~3% at Up ~3% midpoint** 2017 2018 2019 * Global 3G/4G/5G device shipments represent our estimate of CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices shipped globally,
Slide 8: Cumulative $88 billion returned to stockholders
Cumulative $88 billion returned to stockholders As of June 30, 2019 Stock Repurchases* (Billions) $22.57 $7.8 billion remained authorized for repurchase $11.25 under our stock repurchase program. $4.61 $4.55 $3.92 $3.02 $0.95 $1.50 $1.48 $1.67 $1.31 $1.34 $1.09 $0.17 $0.28 $0.14 FY’03 FY’05 FY’06 FY
Slide 9: Financial strength
Financial strength In Billions Jun ‘18 (2) Jun ‘19 Total cash, cash equivalents & marketable securities $35.9 $14.4^ Total assets $62.1 $34.1 Stockholders’ equity $23.0 $5.5 Debt* $22.5 $16.4 EBITDA**(3) $1.3 $5.7 Adjusted EBITDA**(1)(3) $1.7 $1.5 ^ Stock repurchases and repayment of long-term debt
Slide 10: Footnotes
Footnotes 1. Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. Further discussion regarding the Company’s use of Non-GAAP financial measures and detailed reconciliations between GAAP a
Slide 11: Reconciliations
Reconciliations 11
Slide 12: Note regarding use of Non-GAAP financial measures
Note regarding use of Non-GAAP financial measures The Non-GAAP financial information presented herein should be considered in addition to, not as a substitute for or superior to, financial measures calculated in accordance with GAAP. In addition, “Non-GAAP” is not a term defined by GAAP, and as a re
Slide 13: Non-GAAP results
Non-GAAP results In millions, except per share data Non-GAAP QSI Share-based Other Items (1)(2) GAAP Results Results Compensation Revenues $4,894 $18 $— $4,723 $9,635 Net income (loss) $982 $237 ($198) $1,128 $2,149 Q3 ‘19 Diluted EPS $0.80 $0.19 ($0.16) $0.92 $1.75 Diluted shares 1,231 1,231 1,231
Slide 14: EBITDA
EBITDA(1) In millions Q3 ‘18 Q3 ‘19 Net income $1,202 $2,149 Plus income tax (benefit) expense (268) 3,352 Plus depreciation and amortization expense 414 353 Plus interest expense 212 160 Less investment and other income, net 243 344 EBITDA $1,317 $5,670 Adjustments Less QSI operating income (2) $2
Slide 15: Combined R&D and SG&A expenses
Combined R&D and SG&A expenses In millions Q2 ‘19 Results Q3 ‘19 Results % Increase (Decrease) Non-GAAP combined R&D and SG&A expenses 1,656 1,675 1% Plus amounts attributable to QSI 3 3 Plus amounts attributable to other items (1) 8 11 Total combined R&D and SG&A expenses excluding certain shared-b
Slide 16: Tax rates
Tax rates In millions Non-GAAP Results QSI (1) Share-based Other Items (1)(2)(3) GAAP Results Compensation(1) Income (loss) before income taxes $1,101 $312 ($246) $4,334 $5,501 Income tax (expense) benefit (119) (75) 48 (3,206) (3,352) Q3 ‘19 Net income (loss) $982 $237 ($198) $1,128 $2,149 Tax rate
Slide 17: Business outlook
Business outlook As of July 31, 2019 Q4 ‘18 Results (1) Q4 ‘19 Estimates (2)(3) GAAP Revenues $5.8B $4.3B - $5.1B Year-over-year change decrease 12% - 26% GAAP diluted EPS ($0.36) $0.38 - $0.48 Less diluted EPS attributable to QSI (0.01) — Less diluted EPS attributable to share-based compensation (0
Slide 18: Combined R&D and SG&A expenses guidance
Combined R&D and SG&A expenses guidance In millions Q3 ‘19 Results Q4 ‘19 Estimates*(2) Non-GAAP combined R&D and SG&A expenses 1,675 1% - 3% decrease sequentially Plus amounts attributable to QSI 3 Not provided Plus amounts attributable to other items (1) 11 Not provided Total combined R&D and SG&A
Slide 19: Previous business outlook
Previous business outlook As of May 1, 2019 Q3 ‘19 Previous Guidance Estimate (2) Revenues $9.2B - $10.2B GAAP diluted EPS $3.57 - $3.77 Less diluted EPS attributable to QSI $0.01 Less diluted EPS attributable to share-based compensation ($0.16) Less diluted EPS attributable to other items (1) $3.02
Slide 20: Previous combined R&D and SG&A expenses guidance
Previous combined R&D and SG&A expenses guidance As of May 1, 2019 Q3 ‘19 Previous Guidance Estimates Non-GAAP combined R&D and SG&A expenses 6% - 8% increase Plus amounts attributable to QSI Not provided Plus amounts attributable to other items (1) Not provided Total combined R&D and SG&A expenses
Slide 21: Tax rates Q3 '19 previous guidance
Tax rates Q3 ‘19 previous guidance As of May 1, 2019 Non-GAAP QSI (1) Share-based Other Items (1)(2) GAAP Results Results Compensation(1) Estimated Q3 ‘19 tax rate 14% - 15% —% 1% 1% 16% - 17% Q3 ‘19 (3) Estimated annual tax rate 2% —% (1%) 7% 8% (1) The incremental effect of our adjustments to the
Slide 22: Tax rates FY 2018
Tax rates FY 2018 In millions Non-GAAP Results QSI (1) Share-based Other Items (1) GAAP Results Compensation (1) Income (loss) before income taxes $5,383 $24 ($883) ($4,132) $392 Income tax (expense) benefit (40) (2) 140 (5,454) (5,356) FY 2018 Net income (loss) $5,343 $22 ($743) ($9,586) ($4,964) T
Slide 23: Thank you
Thank you Follow us on: For more information, visit us at: www.qualcomm.com & www.qualcomm.com/blog Nothing in these materials is an offer to sell any of the References in this presentation to “Qualcomm” may mean components or devices referenced herein. Qualcomm Incorporated, Qualcomm Technologies,